Fixed Deposits are a favourite investment choice for all Indians. Whether you reside in the country or overseas, you save money and invest it in different financial instruments to earn decent returns. Travelling abroad for better opportunities has become common in India. But one habit that remains constant is the accumulation of funds for emergencies and future expenses.

The NRE Deposit enables you to grow foreign currency savings in India and earn tax-free interest at competitive rates. The funds in this deposit are freely and fully repatriable. The investment you make in a foreign currency gets converted to INR. You convert it to a currency of your choice after repatriation or transfer to another country. Knowing its features is a bonus. Let us discuss them:

Repatriation

The principal and interest amount earned are fully and freely repatriable to your resident country with this FD account. Additionally, you earn competitive interest rates on these deposits, ranging from 3.15% to 4.35% for one year to five years and above.

Flexible tenure

The tenure for the NRI Deposit offered by the bank is flexible. It ranges from one year to 10 years. Opt for the desired tenure according to your financial needs and capacity.

Nomination

A nominee facility is available for this account. In case of the depositor’s death, the nominee controls the investments. They withdraw the funds or continue banking depending on their needs. The account holds funds in Indian currency only.

Tax-free

The principal amount and interest earned on an NRE FD Account are 100% tax-free in India. Your foreign income investment does not attract taxes upon your visit to India. It makes transfers and withdrawals convenient.

Renewal

Online renewal of the NRE and NRO Deposit is possible. Visit the bank website or app and renew the deposit conveniently from any corner of the world. It makes the process hassle-free, reduces paperwork, and avoids frequent visits to the bank branch.

Joint holding

Banks offer you the option of holding a joint NRE FD with more than one Non-Resident Indian. Both individuals access the account conveniently without worrying about fund shortages. Some banks offer deposit and repatriation limits.





Pre-mature withdrawal

You can break the deposit before maturity. However, you need to maintain it for a minimum of 12 consecutive months for eligibility to gain interest payments. The bank also levies pre-closure charges from you.

Besides, you can also open a Foreign Currency Non-Resident Account to retain your foreign currency earnings and earn good returns. The principal and interest earned on the FCNR Account are fully and freely repatriable to and from India.

Closing thoughts

NRIs are Indian citizens living outside India for more than 182 days in a financial year while maintaining strong ties here. Whether you are a Non-Resident Indian or a Person of Indian Origin residing in another country, you can open these Deposit Accounts.